Although difficulties surround, with efforts, many businesses have found their way and brought their products into large supermarket chains. The problem is how to make Vietnamese goods stand firmly on supermarket shelves, improving the competitiveness of local goods.
Local businesses participate in supply-demand connection at the Southeast Region Industry and Trade Fair held in September 2023.
Journey of patience
Nguyen Thai Phu, Director of TP Food Trading Company (Thuan An City), said that in mid-September, TP products entered the largest supermarket chain in Vietnam (AEON MALL) distributed nationwide. The strict standards as well as the testing, medical, mineral, and mold tests set by the AEON system, TP exceeds the required levels."
Previously, although their black garlic wine was exported to the US market, in times of difficulty, this company made continuous efforts to expand consumption in the domestic market. “Even though this product has been exported and meets international quality, it does not have a brand in the domestic market and is not known to consumers, so it is rejected when offered at supermarkets. To find a foothold, the company had to introduce, promote their product, and find partners at many fairs and exhibitions inside and outside the province. Thanks to perseverance, the company's products have become known to consumers and partners. Entering a large supermarket chain after a period of negotiations and business connections is a clear demonstration of the company’s efforts," Phu could not hide his joy.
Recently, in early October, TP's products were awarded a 4-star OCOP certificate at the Southern regional industry and trade conference in Hau Giang province. This once again demonstrates the company’s efforts in their journey to conquer the domestic market.
Reality shows that the most difficulty for Vietnamese businesses come from the businesses themselves. When businesses build their brands, if they are known to consumers, entering supermarkets will be much easier. How do Vietnamese goods, specifically of companies in Binh Duong, get into supermarkets? Hoang Long, Purchasing Director of the Southeast and Central Highlands region of Saigon Co.op, said businesses must build brands and develop products large enough to supply to supermarket chains. Besides, the quality, quantity, and delivery criteria of goods according to the terms of the signed contract must be guaranteed.
Actively cooperate
Experience from businesses that have had their products displayed and sold in large supermarkets shows that businesses need to clearly understand terms of negotiations and proactively offer appropriate terms of cooperation. Tram Van Hue, Director of CVC Trading-Service-Production Company, shared: “Our company's tea is supplied at the Co.opmart supermarket chain. We always try our best to maintain our brand and quality. In particular, each business must comply with the terms of the contract, deliver goods on time and follow the supermarket's regulations. If there are any changes, businesses need to proactively notify supermarkets early to proactively resolve them."
According to Hue, businesses themselves must be proactive in investing in equipment to improve product quality and meet market demands. In addition, it is necessary to proactively find markets to diversify customers, promote products, improve their competitiveness, thereby enhancing reputation among partners.
Takeuchi Takashi, Deputy General Director of office division, AEON Vietnam Co., Ltd., said that with a young population and an increase in the middle class, Binh Duong is a potential market for the retail sector. That is also the reason why Binh Duong is identified as a key market in the investment and development strategy of AEON Group. This trend will continue to increase rapidly thanks to Binh Duong's very positive economic outlook, resulting in people's living standards getting better and better. These are favorable conditions for suppliers, organizations and cooperatives in the area to participate in the supply chain of this group. AEON wants to find manufacturers with good products, affordable prices, and high responsibility towards the community.
Sharing experience about having to be strict in supply contracts, Nguyen Hong Quyet, Kim Long melon cooperative, said that being able to enter a supermarket is a good thing, but what businesses need to pay close attention to are the following conditions: The contract agreement needs to clearly show information related to supply time, price, and payment method very strictly. The most important thing for businesses to protect their rights and avoid losses is that they need to consult and clearly understand all details in the contract to be more proactive in responding to risks that may occur. That is something that Kim Long Cooperative encountered during the process of bringing products to the domestic supermarket chain.
Phan Thi Khanh Duyen, Deputy Director of Provincial Department of Industry and Trade, said that through supply and demand connection activities, competent agencies will support the effective connection of closed chains, from production to distribution. Thereby, orienting business and manufacturers based on trends of retailers and consumers... Through supply and demand connection programs, it also shows the way for goods to enter Vietnamese supermarket system is very open. However, this is a path that requires perseverance as addressing each retailer's request. Dominating the domestic market is also a solution to ensure sustainable development, contributing to the growth of the province's economy.
Reported by Tieu My - Translated by Ngoc Huynh
